Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1887-02-10
INSURING THE BABIES.
Millions of Dollars of Risks Upon Children
Novel Method of Paying the Doctor and the
Undertaken.
Philadelphia Press.

Undertaken.
Philadelphia Press.
"I,ife insurance at retail and for
children is the way they CURLY describe
one of the latest innovations in the in
surance business. Insurance has gener-
ally been regarded as a luxury to be en-
loved only by the rich and by adults.
The last few years have brought about
such changes in the methods of conduct
ing the business of several prominent
insurance companies that people of small
means can by the payment of small week
Iy sums secure the payment of death ben
fits and a few hundred dollars. Bene-
fetal societies promising the payment
of various sums upon tie demise of mem
bers from assessments levied upon sur
viving members is not new idea: but
it is only within the last few years that
companies of the cold line," as they are
termed in the language of the trade, have
dealt in life insurance in small sums,
collecting regular stated premiums and
paying definite amounts. With this in
noyation also came the application of
the principle to the insurance of children
one year of age and upward. In the
short time it has been in operation
this branch of the business has grown TO
an extent beyond credence.
Infant insurance and the insurance of
adults for small amounts are the inven-
ton of an English company, which be-
gan operations fifty years ago, and which
has developed the business to such an ex-
tent that one-half of the population of
England, Ireland, Scotland and Wales IS
enrolled on the books of the concern, and
its collections on premiums In the sum of
a few cents a week amounts to millions
of pounds of sterling every year. The
precautionary measure has become in
5tinctive among the people of the middle
classes. AS illustrative of the extent
to which this retail insurance prevails In
England it is related that few years
ago scaffold surrounding a high Chin
ney in course of erection collapsed and
caused the death of twenty eight men.
Subsequently it transpired that all of
these workingmen were insured in this
company.
It was only ten years ago, however,
that the scheme found its way across the
water to this country, and now there are
these small policies.
The operation of the system In use
in this country is somewhat as the follow
ing:
Children are insured from the age of
l year upon the payment of 3, 5, and 10
cents, or perhaps larger sum per week
death benefits being graded in proportion.
AS an example take the payment of 5
cents per week. For this sum company
will pay upon the death, within one year
after date of insurance, of child years
of age the sum of $15.
Death after one year will secure the
payment of $17; after two years, $40
and so on, gradually increasing until the
limit of $120 is reached, payable upon
the death !. the child after eleven years
from the date of insurance. The purpose
in fixing the amount of the benefit at such
a low figure during the extreme youth of
the beneficiary is double. In the infan-
tile stage there is the greatest danger
from the many complications to which
babyhood is subject, and the risk to the
company is consequently greater, decreas-
ing aInfanchi advances in age. The
other rtrv on is one even less pleasant to
contem plate. AS insurance of this kind
is usually practiced by the poorer classes
of people there have not been wanting
numerous would be benefactors who have
raised the cry that in this form of lnsur-
ance companies were practically offering
Inducements to poor parents to put their
children out of the way by foul means
for the sake of the death benefit. In
England, where the whole system origin
ated, there was such a hue and cry that
parliament ordered rigid investigation
of the deaths of the infants upon whose
lives insurance had been placed. Thous-
sands of cases were investigated, and
among them were found but two instanc-
nh nh f&nl Co oal-
of any positive proof these cases were
simply reported as doubtful. A similar
course in this country failed as signally
to reveal any evidences of foul rlay. Not
withstanding these facts, the death bene-
fits are started at such low point that
there could be no inducement offered to
Inscriptions parents.
Insurance paid by small weekly pay
ments necessarily demands the employ
ment of an elaborate system in the con-
duct of business of any importance.
One of the pioneer companies, which has
in the seven years of its existence written
policies for the insurance of 100000 per-
sons, principally young children.has con-
nected with its agency a corps of fifty
two canvas sers and collectors, whose re-
ceipts of few cents per week from each
insured person aggregate S1.0O0,OOO per
year. The entire city is Systematically
divided into sections, with all the details
marked In regard to sanitary advantages
and other important features. Some por
tions of the city known to be especially
unhealthy and infectious are prohibited
to agents. The solicitors secure their
customers who are subjected to medi-
cal examination by a medical inspector,
and after insurance has been placed, the
canvasser collects the small premium
each week.
But three or four companies have start
ed this branch of the business, but their
transactions are something immense,
considering the insignificant basis of the
business.
The small amount of insurance which
Is secured practically amounts to sum
sufficient merely to pay the undertakers'
and doctors bills. In this light it is re-
garded by these important and unwelcome
functlonaries, and, it is fact of inter
est that since this system has come into
vogue, undertakers and physicians are